THE UK GOVERNMENT HAVE PUBLISHED THEIR PAPER ON THE NEW BETTING TAX RULES
The UK Government have published their paper on the new betting tax rules that will see overseas gambling operators pay the same rate of tax as their UK based competitors at 15%.
Under the new tax laws which will be announced in the governments March budget and then become law from the end of December 2014, companies such as bwin.party, Ladbrokes, Betfair and William Hill among others will be have to pay the new tax structure if they want to offer their services the UK customers.
At present those companies based overseas in Gibraltar, Malta and other regulated offshore operators who currently pay as low as 1% company tax will be charged at the 15% rate should they wish to continue servicing UK players the same as their UK based competitors.
“It is unacceptable that gambling companies can avoid UK taxes by moving offshore, and the government is taking decisive action to ensure this can no longer happen,” Economic Secretary to the Treasury Sajid Javid said.
“These reforms will ensure that remote-gambling operators who have UK customers make a fair contribution to the public finances.”
It is believed the new tax rate will help the government reap in more than £300 million in currently lost revenues.
The UK biggest shop and online gambling operator William Hill which would be hugely affected by the new tax has previously threatened to take their opposition to the European Union in breach of competition laws.